UK-regulated forex brokerage ActivTrades generated an increase of 109.5% in net profit to more than £9.6 million in 2015. Its revenue jumped by 26.5% to £31.4 million last year, according to a filing with the UK’s trade register Companies House.
The broker said most of the profit has been reinvested in the company to aim its expansion outside Europe. To attract new clients, ActivTrades intends to introduce new trading instruments.
The brokerage’s turnover exceeded £31.4 million in 2015, affected by the high volatility in the forex market.
Full 75.6% of the total turnover, or more than £23.7 million, was generated from operations in the UK, while the remaining was from making business in Bulgaria and Italy, or £7.1 million and £621,000, respectively. Of the total, nearly £31.4 million came from trading gains and losses and £30,000 were from interest income on segregated client funds. About 64.6% of ActivTrades’ pre-tax profit came from activities in the UK. More details follow:
The brokerage house had £28.7 million in assets at end-2015, compared to £21.9 million a year earlier.
ActivTrades reported more than 10,000 active clients on a monthly basis. In 2015, alone the broker attracted 9,039 new clients from 66,000 identified potential customers. The increased number of clients, the broker’s overall trading volume jumped by 50% in 2015, compared to the previous year. Meanwhile, the amount of net client deposits with the broker grew 23% to £34 million at the end of 2015.
In comparison, Oanda Europe, the UK arm of Canadian forex broker Oanda, reported a loss of £1.54 million in 2015, despite its revenue jumping 84% to £9.18 million. Its results were strongly affected by the … movement of the Swiss frank (CHF), which got unpegged from the Euro (EUR) in January 2015. The broker generated a trading volume of $154.7 billion last year, or an average of $12.9 billion per month.
London-based ActivTrades is a financial markets trader, active in the forex, contracts for difference (CFDs), and spread betting markets. Its product portfolio also includes indices, shares, treasuries, and commodities. It is licensed and regulated by the Financial Conduct Authority (FCA).
Source: Companies House